Indonesia Records 0.02 Percent Deflation in August

TEMPO.CO, Jakarta - The Central Statistics Agency (BPS) announced that Indonesia had recorded 0.02 percent deflation with the consumer price index (IHK) stood at 125.13 in August 2016.

"This is the lowest deflation since August 2001," BPS deputy of Distribution and service Statistics Sasmito Hadi Wibowo said at his office on Thursday, September 1, 2016.

The year-to-date inflation rate stood at 1.74 percent, and the year-on-year inflation rate stood at 2.79 percent. August's core component inflation was recorded at 0.36 percent, and the year-to-date core component inflation stood at 2.24 percent. Compared to the previous year, the core component inflation stood at 3.22 percent.

Sasmito revealed a decreasing trend in commodity prices in August.

"The deflation was caused by declining prices reflected by decreasing indexes of spending groups," he said.

The decreasing indexes were food at 0.68 percent, as well as transportation, communication, and financial services at 1.02 percent.

Meanwhile, spending groups experiencing inflation were processed food, beverages, cigarette and tobacco at 0.41 percent; housing, water, electricity, gas and fuel at 0.41 percent; clothes at 0.40 percent; health care at 0.39 percent; and education, recreation, and sports at 1.18 percent.

The highest deflation occurred in Kupang, East Nusa Tenggara, at 0.87 percent with a consumer index price of 125.87, while the lowest one occurred in Cilegon at 0.01 percent with a consumer index price of 129.21. Manokwari and Sorong recorded the highest inflation each at 1.27 percent and consumer price indexes of 121.60 and 127.38, respectively. The lowest inflation occurred in Jakarta and Kendari each at 0.01 percent with consumer price indexes of 125.10 and 121.66, respectively.

GHOIDA RAHMAH | ANGELINA ANJAR SAWITRI

Source: Indonesia Records 0.02 Percent Deflation in August